gas pipeline, page-34

where else will eni get the gas. as posted earlier, santos is well advanced with the flng solution for tern and frigate. at recent as last month santos (again) has flatly ruled the option as the investment works against a flng roi decision. period.

blacktip only has enough gas to last THE CURRENT DARWIN MARKET for the next five years (i.e. this 5 years of supply excludes the circa 12.5% of annual Darwin gas supply which would need to be diverted to meet Gove's demand. Gove is an immediate political issue (football) but it is Darwin's long-term strategic gas requirements will be front in centre in the mind of ENI (and other key stakeholders). That is, ENI will want to fiercely defend their exploration and infrastructure investment which has effectively resulted in a 'wholesale supply' dominance of the Darwin gas market.

easy answer for eni = 454. period. unless someone else knows of an easier, more cost effective, realistic, timely and political acceptable solution??

my preference would be cash for 454 divestment plus blackwood and heron wells (with both wells to be drilled in 2013).

adl